Helyar pushes for budget freeze for committees to save £40m.

Deputy Mark Helyar wants a strict policy of no replacements for jobs left vacant for six months, a stop to annual pay increments, and to push the States into closing the public sector pension scheme to new entrants from 2026.

The move would freeze committee budgets at 2024 numbers and hold States spending at £610.3m.

‘Whatever the outcome on raising more taxes there is I believe a clear steer from the public that more significant and urgent spending restraint is required by the States,’ Deputy Helyar said.

‘If there is going to be a painful rise in taxation, then it should be fair with all contributing, and I believe government, which spends all the money, needs to take an immediate haircut on its spending.

‘Government must demonstrate that it can act responsibly and frugally if the public is to accept, however reluctantly, that more revenue is going to be required.’

Deputy Helyar will try to amend the States Budget at its meeting in early November.

His proposal does not cut budgets but freezes them at 2024 levels, with no provision made for an annual pay increase, thereby removing the need for the exchequer to raise an extra £40m.

He has experience of the Policy & Resources attempting to control recruitment in the past. On the committee’s election, it attempted to have the right to block some senior appointments.

Now he is calling for the committee to be able to direct that any post vacant for six months or more should be deleted, and reinstated only if the service area concerned can demonstrate that a post is essential to the continued delivery of frontline services.

He would also see annual increments – automatic pay rises on a scale for the level of the post – scrapped, with recruits appointed on an agreed rate for the job. Increments cost the States £450,000 a year.

Deputy Helyar said while frontline services did need to be funded and staffed, he accepted public concern about the need for extra taxation and particularly about consistent growth in public sector costs.

‘The public sector will have a new leader from the beginning of 2025 with a very important role in ensuring that the civil service is delivering value for money in essential services and ensuring that there is no further expansion of public sector activities, and therefore expense, given that resources are finite, and now shrinking, and there is a strong public expectation that government will live within its means.’

Deputy Helyar said that P&R cannot impose cuts or savings on committees – its only control is to limit budgets and require committees to take the appropriate action.

As Treasury lead, he oversaw an increase in States spending from £527m. in the 2022 Budget to £610m. in 2024, which he said was mainly attributable to health spending, which has risen from £135m. in 2021 to £245m. this year, and had ‘burned up’ budget reserves. Inflation had also impacted costs and staff pay, he said.